Revocation, Change, and Disaster with Beneficiaries

Why may a designation be irrevocable?

-beneficiaries have interest in policy -policyowner may not be able to exercise rights without consent of beneficiary -may not borrow against cash value or assign policy to another without beneficiary consent -policyowner has complete control if beneficiary dies

how many days need to occur for common disaster clause to be intact?

14-30

irrevocation

cannot occur without written conset of beneficiary

who does common disaster clause mainly protect?

contingent beneficiary

why is intent protected by uniform simultaneous death law?

fulfill wishes of policy owner regarding payments to beneficiary

common disaster clause

if common accident happens, even if beneficiary outlived insured by a specific number of days, act as if primary died first so proceeds go to contingent or estate

When will problem arise in who gets the death benefit?

if insured and primary die at approx the same time from common accident with no evidence of who died first

uniform simultaneous death law

if occurs, policy proceeds are to be distributed as if the primary beneficiary died first

who does uniform simultaneous death law protect?

policy owner's intent and contingent beneficiary

record/filing

policyowner completes form with change and submits it to insurer

endorsement

policyowner is require to send request for change with contract to home office of insurer, must be approved by home office

revocation

policyowner without consent or knowledge of beneficiary may change designation at any time

two methods of changing beneficiary

recording/filing endorsement